Japan’s Financial Services Agency (FSA) has officially announced its support for a pilot stablecoin project involving three of the country’s largest banks — Mizuho Bank, MUFG, and Sumitomo Mitsui Banking Corporation (SMBC).
The initiative will test how multiple major banking groups can jointly issue stablecoins classified under Japanese law as “electronic payment instruments.” The project aims to ensure that such tokens can operate within existing regulatory and operational frameworks while maintaining compliance and security standards.
Japan Accelerates Blockchain-Based Payment Innovation
According to an FSA statement published on Friday, the pilot brings together the three megabanks in a coordinated effort to create a shared stablecoin infrastructure for payments.
The consortium also includes Mitsubishi Corporation, Progmat Inc., and Mitsubishi UFJ Trust and Banking Corporation, signaling deep institutional collaboration.
The FSA stated that the main objective of the project is to verify whether the system can operate “lawfully and appropriately” under Japan’s financial regulations. The regulator expects the pilot to launch later in November 2025, with findings to be published on the agency’s official website after completion — including legal and compliance insights.
Part of Japan’s Payment Innovation Project (PIP)
The stablecoin initiative marks the first pilot under the Payment Innovation Project (PIP) — a new program established by the FSA to accelerate blockchain-driven payment innovation.
PIP operates within the FSA’s existing FinTech Proof of Concept Hub, active since 2017, which supports experimentation with emerging financial technologies.
According to the agency, this collaboration reflects Japan’s broader effort to modernize its financial infrastructure, enabling faster and more efficient digital transactions between institutions.
The FSA’s statement confirms earlier reports from Nikkei, highlighting that the joint project represents a key milestone in Japan’s approach to regulated digital payments and multi-bank tokenized assets.
